Refer to Figure 8.1. If each player cooperated with one another rather than playing their dominant strategies, the economic pie would grow by

Reaching an efficient bargain is difficult when the

a. externality is large. b. number of interested parties is large. c. externality is negative. d. government becomes involved.

The extra costs incurred to avoid holding cash when there is inflation are called the:

A. shoe leather costs. B. average costs of inflation. C. external costs. D. consumer price index costs.